Draft Local Government Performance Reporting Framework & Indicators. Working Paper

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Draft Local Government Performance

Reporting Framework & Indicators

Working Paper

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1. Purpose of this paper

This working paper is intended to be used as a basis for providing feedback on the draft Local Government Performance Reporting Framework (LGPRF) and more specifically the draft indicators. It sets out the overall objective of the LGPRF, guiding principles and frameworks for the development of indicators and outlines draft indicators. It builds on the key features discussed in the Directions Paper released by Local Government Victoria in December 2012 and should be read in conjunction with that paper1.

Stage 1 of the project is nearing completion. Local Government Victoria has worked collaboratively with a broad range of technical and advisory groups involving over 70 local government, academic and subject matter experts to develop a draft performance reporting framework and indicator set. Local Government Victoria is undertaking an active program of engagement over May and June 2013 to continue to refine the draft framework and indicators so that it is a robust and useful framework for assessing local government performance. Refinement and validation of the draft framework and indicators will continue into the pilot program phase commencing in July 2013.

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How you can contribute

A number of opportunities are provided for interested stakeholders to contribute to the refinement of the LGPRF. A series of regional workshops are being convened during May 2013 targeted at local government officers, managers and coordinators with relevant expertise and/or responsibility for organisational performance reporting.

The objective of the workshops is to:

 obtain feedback on the draft framework and indicators;

 build understanding of the LGPRF and how it will affect councils; and

 promote involvement in the pilot program.

Full details of the regional workshops can be found on Local Government Victoria’s

website at www.dpcd.vic.gov.au/localgovernment/performance-reporting

A community workshop will also be held in Melbourne on Tuesday 28 May from 2.00pm to 4.00pm. This workshop is open to members of the community who have an interest in the LGPRF.

Local Government Victoria will also be meeting with local government CEOs, Councillors, Mayors and Special Interest Groups via existing regional network meetings over the coming months.

Comments on this paper are welcome until Friday 14 June 2013 and can be emailed to [email protected]

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2. Objective and guiding principles

2.1 Objective of assessing performance

The primary objective of the LGPRF is to provide comprehensive performance information that meets the needs of stakeholders. This is an ambitious objective that seeks to balance the needs and expectations of a number of audiences. In meeting this objective:

 councils will have information to support strategic decision making and continuous improvement;

 communities will have information about council performance and productivity;

 regulators will have information to monitor compliance with relevant reporting requirements; and

 State and Commonwealth Governments will be better informed to make decisions that ensure an effective, efficient and sustainable system of local government.

To provide a comprehensive picture of council performance, indicators have been developed across three thematic areas: service performance, financial performance and sustainability. An objective for assessing performance against each thematic area has been established to inform the development of performance indicators. These are outlined below.

Table 1: LGPRF indicator sets and objectives

Service performance To provide relevant information about the effectiveness and efficiency of local government services.

Financial performance To provide relevant information about the effectiveness of financial management in local government.

Sustainability To provide relevant information about whether local governments have the capacity to deliver services, absorb changes and shocks and make decisions in the best interests of the community over the long term.

2.2 Guiding principles of LGPRF

Guiding principles have been established in consultation with the technical working groups to assist in the development and selection of indicators to measure local government performance. Principles relating to the reporting of performance information will be considered separately.

Indicators should be ‘SMART’

The construction of specific indicators should seek to adhere to the SMART principles, that is, indicators should be:

 specific to the service, activity and/or dimension of performance being measured;

 based on measurable factors that can be observed, documented and verified (either by audits or other mechanisms);

 aligned with objectives;

 relevant to the service, activity and/or dimension of performance being measured; and

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Indicators should build a balanced picture of performance

A range of performance indicators should be developed to cover different aspects of performance. A single indicator is typically not able to provide a balanced picture of performance; therefore a suite of indicators, measuring different aspects of performance should be pursued.

Indicators should be understandable to a broad audience

Performance indicators must be understandable to a broad audience. They should be clear and unambiguous so that stakeholders can draw meaningful conclusions about the performance of councils. A balance should be struck between performance indicators being understandable to the community, useful to councils to support continuous improvement and instructive to other levels of government. Performance indicators must also measure what they claim to measure. Proxy indicators should be clearly identified as such.

Indicators should align with other reporting requirements

Use of acceptable (albeit imperfect) performance indicators that are already in use in other reporting arrangements should be pursued where appropriate. Adopting existing indicators can ensure consistency with other, relevant reports where this adds value, lowers the cost of data collection and avoids delays in reporting. Performance indicators should also be developed with national standards and reporting regimes in mind to allow for inter-jurisdictional analysis as the framework develops. Indicators should be comparable across councils and consistent over time

Each indicator must be clearly defined with counting rules and measurement standards established to facilitate a valid measure of performance and aid reasonable comparisons. Indicators should also allow for consistent comparisons of performance over time. This requires that performance indicators be well designed and robust from the outset and remain broadly stable over time.

The benefit of collecting information should outweigh the collection costs

The costs associated with collecting information needs to be balanced against the benefits of collecting that information.

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3. Service

performance

A Service Performance Technical Working Group (Services Working Group) was established by Local Government Victoria to advise on the development of a set of draft service performance indicators for local government in accordance with the guiding principles and conceptual model developed for this purpose. Members were appointed via a targeted expression of interest process to the LGPro Corporate Planners Network and LGPro Corporate Services Special Interest Group. To ensure a diversity of views, appointments took into account geographical representation as well as individual experience and expertise.

3.1 Service Performance Indicator Framework

One of the early tasks of the Services Working Group was to agree on a Service Performance Indicator Framework (the Service Framework). The Service Framework outlined in Figure 1 has been adapted from the Productivity Commission’s Report on Government Services and reflects the service process through which local governments transform inputs into outputs and outcomes in order to achieve desired service objectives.

Figure 1. Services Framework

The Service Framework takes the objective of each service and measures it in terms of effectiveness and efficiency being the two overarching dimensions of performance. The effectiveness indicators measure how well the outcomes of a service achieve the stated objectives of that service and the efficiency indicators measure how well resources (inputs) are used to produce outputs.

The overarching dimension of effectiveness is measured according to appropriateness and quality output indicators and the overarching dimension of efficiency is measured by cost. The Service Framework includes outcome indicators of service effectiveness that measure how well the outcomes of the service have achieved the stated objective. Dimensions are further defined in Table 2 below.

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Table 2: Dimensions of the Service Performance Indicator Framework

Dimension Dimension definition Example indicators/measures Appropriateness

Output indicators that measure how well services meet users’ needs

Access: how easily clients can obtain the service in terms of both timeliness and affordability

Participation rate

‐ Proportion of eligible users using the service

Waiting time

Equity: how well the service meets the requirements of all groups

Equity of access

‐ Participation rates of special needs groups

Service levels: whether users are being over or under serviced

Activity (output) level

‐ Standardised volume of outputs Quality Output indicators that

measure the extent to which a service is delivered in accordance withdefined standards

Conformance of service to specification or standard

‐ Service level audit outcome or output monitoring

‐ Proportion of services or outputs that meet service standard Cost Output indicators that

measure how efficiently services use their resources (inputs) to produce outputs

Average cost per unit (unit cost) ‐ Total inputs/total outputs ‐ Total direct cost of providing

service / Total number of units of service delivered

Service Effectiveness

Outcome indicators that measure how well the

outcomes of the service have achieved the stated objective

Community satisfaction

‐ Proportion of service users satisfied with the service delivered

3.2 Selection of services

Common local government services have been identified for inclusion in the LGPRF with an emphasis on selecting a small group of services that all councils provide. A comprehensive range of service areas were initially considered and progressively refined to a total of 14 common local government services. The following factors were considered for inclusion of service areas in the draft framework:

 commonality of services across all councils;

 councils have primary control and/or statutory responsibility for delivery of selected services;

 resource intensiveness (that is, overall significance within the range of services provided by councils);

 the services should be viewed as important to the community; and

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Services included in the draft framework are not designed to be a judgement on what council activities are most important. Insights gained from developing indicators will be progressively applied to additional services over time. Councils can also voluntarily develop indicators for further service areas.

3.3 Selection

of

indicators

An extensive range of sources were reviewed to identify suitable indicators for inclusion in the LGPRF services indicator set. Key steps taken include:

 Review of the service indicators developed by the Essential Service Commission;

 Analysis of indicators supplied by Service Working Group members;

 Validation of shortlisted indicators in consultation with relevant state departments and agencies; and

 Validation of shortlisted indicators in consultation with relevant subject-matter experts within local government.

A total of 76 service indicators and measures have been shortlisted for inclusion in the LGPRF. Draft definitions, objectives, indicators and measures for service performance are outlined at Appendix A.

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4. Financial

performance

A Financial Performance Technical Working Group (Finance Working Group) was established by Local Government Victoria to advise on the development of a set of draft financial performance indicators for local government in accordance with the guiding principles and conceptual model developed for this purpose. Members were appointed via a targeted expression of interest process to members of Local Government Finance Professionals. To ensure a diversity of views, appointments took into account geographical representation as well as individual experience and expertise.

4.1 Financial Performance Indicator Framework

The Financial Performance Indicator Framework (the Financial Performance Framework) outlined in Figure 2 was agreed by the Finance Working Group to be an appropriate framework for measuring financial management effectiveness in local government. It establishes the objective of the indicator set and measures performance through a range of output and outcome indicators.

Figure 2. Financial Performance Framework

The Financial Performance Framework takes the key objective of effective financial management and assesses this in the context of five overarching dimensions – operating position, liquidity, obligations, stability and efficiency. Each dimension is measured with lag indicators, described as outputs. When taken together, these output indicators provide an overall picture of financial management effectiveness. Each dimension is defined in table 3 below.

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Table 3: Dimensions of the Financial Performance Framework

Dimension Definition

Operating position Measures whether a council is able to generate an underlying surplus Liquidity Measures whether a council is able to generate sufficient cash to pay

bills on time

Obligations Measures whether the level of debt and other long term commitments is appropriate

Stability Measures whether a council is able to generate revenue from a range of sources

Efficiency Measures whether a council is using resources efficiently

4.2 Selection

of

indicators

A comprehensive review of existing financial reporting frameworks and indicators was undertaken in order to shortlist potential financial performance indicators for inclusion in the LGPRF. Indicators were trialled by the Finance Working Group using data from audited council financial statements and budgets.

As a result of this process, 12 draft measures across 5 dimensions of financial performance have been identified for inclusion in the LGPRF. The draft indicators, measures and definitions are set out at Appendix B.

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5. Sustainability

A Sustainability Working Group was established by Local Government Victoria to advise on the development of a set of draft sustainability indicators for local government. A broad spectrum of practitioners, observers, academics and subject matter experts were appointed to the Sustainability Working Group.

Given the considerable existing knowledge base and literature in regards to local government sustainability, a literature review and discussion paper was produced by Local Government Victoria to inform the work of the Sustainability Working Group

5.1 Defining

“Sustainability”

To ensure a consistent understanding of what sustainability means in the context of the LGPRF, it was necessary to define the term sustainability within the local government context. The

Sustainability Working Group agreed on the definition outlined in Box 2.

5.2 Sustainability Indicator Framework

The Sustainability Indicator Framework outlined in Figure 3 was agreed by the Sustainability Working Group to be an appropriate framework for measuring long term sustainability in local government. The Sustainability Indicator Framework establishes the objective of the indicator set and measures it through a range of output and outcome indicators.

Box 1. Definition of Sustainability

Sustainability is about having the capacity to deliver services, absorb changes and shocks and make decisions in the best interests of the community over the long term. This includes:

 Meeting the agreed service needs of the community

 Absorbing foreseeable changes and unexpected shocks without having to make disruptive revenue or expenditure adjustments

 Having strong governance and management frameworks in place covering community engagement, planning, monitoring, reporting and decision making.

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Figure 3. Sustainability Indicator Framework

The Sustainability Indicator Framework takes the objective of sustainability and assesses this in the context of three dimensions – financial performance, capacity and governance and management. Each of these dimensions is measured in terms of lead indicators described as outputs. When taken together, these outputs enable a judgement about long term sustainability to be made. Each dimension is defined in Table 4 below.

Table 4. Dimensions of the Sustainability Framework

Dimension Definition

Financial performance The council must be able to absorb foreseeable changes and unexpected shocks without having to make disruptive revenue or expenditure adjustments

Capacity The council must be able to meet the agreed service needs of the community.

Governance and management

The council must have strong governance and management frameworks in place covering community engagement, planning, monitoring, reporting and decision making.

5.3 Selection

of

indicators

A comprehensive review of existing measures of financial performance, capacity and governance and management was undertaken in order to shortlist potential sustainability indicators for inclusion in the LGPRF.

From this analysis, it was evident quantitative measures of financial performance and capacity are well established. For governance and management, a qualitative self-assessment checklist was determined to be the most practical approach given the inherent difficulties in determining output and outcome measures for this area. Where established, accepted standards and guidelines will be used to guide the self-assessment process.

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12 quantitative measures across the dimensions of financial performance and capacity have been identified for inclusion in the LGPRF, along with 26 qualitative measures across the dimension of governance and management. Draft indicators, measures and definitions across the three dimensions are set out at Appendix C.

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6. What else needs to be done?

6.1 Indicator

specifications

The development of standard indicator definitions, numerators, denominators, computations and counting rules will be key inputs to next stage of the process. ‘Specifications’ will be developed for each indicator to ensure a consistent interpretation of indicators - an essential element of comparative reporting.

6.2 Identification of data collection sources

Identification of existing reporting that can be leveraged into the LGPRF is already well progressed. Further consultation with data owners needs to occur throughout the pilot period to understand existing reporting arrangements.

6.3 Reporting

format

The LGPRF will form part of the Performance Statement and be subject to audit by the Victorian Auditor-General’s Office. The form and content of the Performance Statement will be developed in the next stage of the project. The current Performance Statement will be used as a template for developing a standard reporting format and will include an opportunity for councils to provide contextual information and commentary on variances in results.

6.4 Pilot

program

All councils are encouraged to use the performance reporting framework in the pilot period, commencing in July 2013. Local Government Victoria will work more intensively with a representative group of councils throughout this period to examine council information management systems, capacity to report against the framework and to understand data collection and implementation issues. Expressions of interest for participation in the pilot program will be sought in early June 2013.

6.5 Reducing the reporting burden

Work in relation to the streamlining and reduction in reporting burden to offset the work required to implement the LGPRF is ongoing. Over the past 12 months, Local Government Victoria has been leading a whole-of-government exercise to identify existing local government reporting requirements, with view to streamlining and removing unnecessary reporting burdens.

Through this process, about 100 existing reporting requirements have been identified. Over a third of these reporting requirements have been identified by Departments for streamlining or removal. The Government intends to make an announcement in the coming months in relation to the extent of this reduction in reporting burden.

6.6 Enabling

legislation

The LGPRF will be mandatory from 1 July 2014. Legislation to enable the LGPRF and modernise and simplify the overall regime of planning and reporting within the Local Government Act 1989 and Local Government (Finance and Reporting) Regulations 2004 will be brought before Parliament in early 2014.

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APPENDIX A Service performance indicators

The draft service performance indicators should be read in conjunction with Table 2. Sometimes the terms used in performance measurement have different meanings for different people. In general, the LGPRF uses a standard terminology to provide consistency in interpretation. The following list contains standard definitions of common terms used in LGPRF service performance framework:

Definition – a description of the service, the intended service recipient and what is included in the service for the purposes of the LGPRF

Objective – the desired outcome from the provision of the service Indicator – the concept to be measured

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1. Governance

Definition

Provision of good governance to the community including processes for making and implementing decisions with reference to community engagement, policy frameworks and practice and in compliance with relevant legislation. Objective

To make and implement decisions in the best interests of the community. Relevant Legislation

Local Government Act 1989 External Reporting

Community Satisfaction Survey – Local Government Victoria (LGV) Local Government Investigations and Compliance Inspectorate (LGI)

Dimension Indicator Measure Data Source Comments

Appropriateness Transparency

Engagement

1. Number of confidential council meeting items classified under s89(2)(h) “Any other matter” of the Local Government Act 1989 / Total number of council meeting agenda items

2. Number of notices of motions / Total number of ordinary council meetings

3. Number of submissions received under s223 / Number of s223 submission opportunities Council Council Council Quality Attendance Decision Making

4. Councillors attendance at council

meetings and special committees / Total eligible council and special committee meetings

5. Number of council resolutions “for noting” / Total number of council agenda items

Council

Cost Service cost 6. Direct cost of governance / Total

municipal population

Council

Service Effectiveness

Compliance 7. Number of LGI full investigations that lead to a prosecution

8. Number of applications for councillor conduct panels

9. Number of probity auditor appointments 10. Number of councillor suspensions/forced

leave of absences

11. Community satisfaction with community engagement

12. Community satisfaction with council decision making LGI LGV LGV LGV LGV LGV New community satisfaction survey measure to be established for council decision making

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2. Statutory Planning

Definition

Provision of land-use and development assessment services to applicants and the community including advice, determination of applications.

Objective

To make planning application decisions which are consistent with the local planning scheme. Relevant Legislation

Planning and Environment Act 1987 External Reporting

Planning Permit Activity Reporting System – Office of Planning Performance (OPP) Victorian Civil and Administrative Tribunal (VCAT)

Appropriateness Timeliness 13. Median net days to make a planning decision OPP Users include applicants and other parties Quality Service standard

14. Number of planning decisions completed within sixty days/ Total number of planning decisions made

OPP

Cost Service cost 15. Direct cost of service / Total planning applications decided

Council Direct cost does not include management or corporate overheads Service Effectiveness

Compliance 16. Number of VCAT decisions in favour of council / Total number of VCAT referrals

VCAT

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3. Economic Development

Definition

Provision of support and advice to businesses and industry including lobbying, partnership opportunities, networking and training programs.

Objective

To stimulate local economic activity.

Relevant Legislation External Reporting

Australian Business Register - Australian Taxation Office (ATO)

Appropriateness Participation 17. Number of active businesses / Total number of businesses Council Active businesses are those participating in at least one Council business development program Quality Service standard

18. Number of business development events held / Total number of planned business development events

Council

Cost Service cost 19. Direct cost / Total number of active businesses

Council Direct cost includes staff resources and support programs. It excludes management and corporate overheads Service Effectiveness Business activity

20. Number of new businesses / Total number of businesses ATO

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4. Roads

Definition

Provision of a network of sealed local roads2 under the control of the municipal council to all road users. Objective

To provide a well maintained and renewed local road network that is safe and efficient. Relevant Legislation

Road Management Act 2004 External Reporting

Local Government Infrastructure survey – Local Government Victoria (LGV) Community Satisfaction Survey – Local Government Victoria (LGV)

Council annual returns – Victoria Grants Commission (VGC) Transport Accident Commission (TAC)

Appropriateness Service level 21. Number of kilometres of local roads renewed /

Total kilometres of local roads 22. Number of kilometres of local roads

maintained /

Total kilometres of local roads

Council

Quality Condition 23. Number of kilometres of local roads with a Pavement Condition Index =or> 4 / Total kilometres of local roads

LGV Pavement Condition Index methodology to be confirmed Cost Cost of renewal/ maintenance

24. Renewal expenditure on local roads / Total kilometres of local roads renewed 25. Maintenance expenditure on local roads /

Total kilometres of local roads maintained LGV, Council LGV, Council Service Effectiveness Satisfaction Safety

26. Community satisfaction with local roads 27. Number of serious injuries/deaths on

local roads / Total kilometres of local roads LGV TAC Footpaths to be removed from LGV Satisfaction Survey

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5. Libraries

Definition

Provision of print and digital based resources to the community in a variety of formats including collection services, e-services, research tools and interactive learning programs.

Objective

To provide free, accessible and well utilised print and digital based resources. Relevant Legislation

Local Government Act 1989 External Reporting

Standards and Guidelines for Australian Public Libraries – Australian Library Information Association (ALIA) Annual Survey of Public Libraries – Public Libraries Victoria Network (PLVN)

Appropriateness Participation 28. Number of active library members / Total eligible municipal population

ALIA Eligible members are those over 5 years of age Quality Resource standard

29. Number of collection items published in last 5 years / Total number of collection items

ALIA / PLVN

Cost Service cost 30. Direct operating cost / Total number of active library members

31. Expenditure on library materials / Total municipal population ALIA / PLVN ALIA / PLVN Direct cost does not include library materials, management or corporate overheads Service Effectiveness Satisfaction Utilisation

32. User satisfaction with library service 33. Number of library visits / Total number of

active library members

ALIA PLVN

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6. Waste collection

Definition

Provision of kerbside and disposal waste collection services to the community. Objective

To minimise the amount of waste diverted to landfill. Relevant Legislation

National Environment Protection (Used Packaging Materials) Measure (the NEPM) External Reporting

Local Government Annual Survey – Sustainability Victoria (SV)

Appropriateness Service level 34. Additional bin requests / Total number of collection households

Council

Quality Service

standard

35. Number of bins missed / Total number of bin lifts

Council

Cost Service cost 36. Direct cost of garbage service / Total number of garbage bin lifts

37. Direct cost of recyclables service / Total number of recyclables bin lifts

SV SV Direct cost does not include management corporate overheads or revenue Service Effectiveness Waste diversion

38. Weight of all waste types (excluding garbage) collected /

Total weight of all waste types and methods of collection SV

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7. Pools

Definition

Provision of indoor and outdoor pools to the community and visitors for water safety, sport and recreation. Objective

To provide safe, accessible and well utilised facilities. Relevant Legislation

Public Health and Wellbeing Act 2008

Public Health and Wellbeing Regulations 2009 External Reporting

Community Satisfaction Survey – Local Government Victoria (LGV)

Appropriateness Participation 39. Number of visits to facilities / Total municipal population

Council

Quality Safety 40. Days lost due to water quality / Total available days of operation

41. Number of water safety incidents / Total number of visits to the facility

Council

Cost Service cost 42. Net operating cost of service / Total visits

Council Net operating cost includes user income but does not include management or corporate overheads Service Effectiveness

Satisfaction 43. Community satisfaction with pools LGV Community Satisfaction survey to be amended to include specific question on pools

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8. Sports grounds

Definition

Provision outdoor sports grounds including, playing surfaces, on-ground infrastructure to local sporting groups and casual users for structured activities.

Objective

To provide accessible and well utilised facilities. Relevant Legislation

External Reporting

Appropriateness Participation 44. Total municipal population / Total number (or sqm) of sports grounds

Council

Quality Condition 45. Number of sports grounds rated equal to or greater than the agreed standard/ Total number (or sqm) of sports grounds

Condition standard to

be

established

Cost Service cost 46. Net operating cost of service /

Total number (or sqm) of sports grounds

Council Net operating cost includes

user income but does not include management or corporate overheads Service Effectiveness

Utilisation 47. Number of structured activities / Total number (or sqm) of sports grounds

Council

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9. Street sweeping

Definition

Provision of street sweeping services to the community including removal of litter and debris from local roads. Objective

To provide clean local roads while minimising environmental and flooding risks. Relevant Legislation

Appropriateness Service level 48. Number of street cleaning requests / Total number of local road households

Council

Quality Service

standard

49. Number of kilometres of local roads swept according to agreed frequency / Total kilometres of local roads

Council

Cost Service cost 50. Direct cost of service / Total kilometres of local roads swept (or sqm)

Flooding risk 51. Number of local road pits requiring reactive cleaning / Total number of local road pits Council

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10. Animal management

Definition

Provision of animal welfare and responsible pet3 ownership services to the community including monitoring, registration, enforcement and education.

Objective

To protect the health and safety of animals humans and the environment. Relevant Legislation

Domestic Animals Act 1994

Infringement (Reporting and Prescribed Details and Forms) Regulations 2006 Prevention of Cruelty to Animals Act 1986

Infringement Reporting – Department of Justice (DoJ)

Domestic Animal Management Plan – Department of Environment and Primary Industries (DEPI) Magistrate Court prosecutions - Department of Justice (DoJ)

Appropriateness Service level 52. Number of nuisance animal reports / Total number of registered pets

Council

Quality Service

standard

53. Number of registrations / Total number of households

Council

Cost Service cost 54. Direct cost of service / Total number of registered pets

Council Direct cost does not include management or corporate overheads Service Effectiveness Health and safety

55. Number of nuisance animals

prosecutions proven / Total number of registered pets DoJ

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11. Food safety

Definition

Provision of food safety services to the community including registrations, education, monitoring, inspections and compliance.

Objective

To protect the health and safety of consumers.

Relevant Legislation Food Act 1984

Infringement (Reporting and Prescribed Details and Forms) Regulations 2006 External Reporting

Infringement Reporting – Department of Justice (DoJ) Food Act Annual Report – Department of Health (DoH)

Appropriateness Service level 56. Number of Food Act orders issued for compliance / Total number of registered premises

Council

Quality Service

standard

57. Number of registered food premises that receive a compliance assessment annually / Total number of registered premises that require an annual safety assessment

58. Number of registered food premises that receive statutory food sampling annually / Total number of registered premises gazetted for food sampling

Council

Cost Service cost 59. Direct cost of service / Total number of registered premises

Council Direct cost does not include management or corporate overheads Service Effectiveness Health and safety

60. Number of food borne disease outbreaks / Total number of registered businesses

DoH

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12. Home and community care (HACC)

Definition

Provision of support to frail older people, those with disabilities living at home and their carers whose capacity for independent living is at risk including needs assessment and provision of home care, personal care, respite care, home maintenance, meals and transport services.

Objective

To support people to live independently and safely in their own community and home environment. Relevant Legislation

Home and Community Care Act (Commonwealth) 1985 External Reporting

HACC minimum data set – Department of Health (DoH)

Appropriateness Participation 61. Number of people receiving HACC service / Target population for HACC services

62. Number of eligible service recipients on waiting list / Total number of current service recipients

DoH

Council

Quality Service

standard

63. Rating of good or higher against the National Service Standards Instrument

DoH Collected as part of 3

yearly audit

Cost Service cost 64. Direct cost of domestic assistance service / Total number of hours of domestic assistance service provided

DoH Domestic assistance includes home care, personal care and respite care. Direct cost does not include management or corporate overheads Service Effectiveness

Satisfaction 65. User satisfaction with HACC service DoH Collected as part of 3 yearly audit

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13. Maternal and child health (M&CH)

Definition

Provision of universal access to health services for children from birth to school age (3.5 years) and their families including early detection, referral, monitoring and recording child health and development, and providing information and advice

Objective

To promote healthy outcomes for children and their families. Relevant Legislation

The Child Wellbeing and Safety Act 2005 External Reporting

M&CH services annual report – Department of Education and Early Childhood Development (DEECD) Victorian Child and Adolescent Monitoring System (VCAMS) – Department of Education and Early Childhood Development (DEECD)

Appropriateness Participation 66. Number of infants receiving M&CH service home consultation / Total eligible infants

67. Number of children attending the 3.5 year ages and stages visit / Total eligible children DEECD DEECD VCAMS indicator 30.3 VCAMS indicator 30.5 Quality Service standard

68. Number of infants enrolled at M&CH service / Total eligible infants

DEECD VCAMS indicator 30.4

Cost Service cost 69. Direct cost of service / Total number of hours of service delivered

Satisfaction 70. User satisfaction with M&CH service Council

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14. Immunisation

Definition

Provision of vaccinations against preventable diseases to eligible infants, children and adolescents. Objective

To minimise the incidence of vaccine preventable disease. Relevant Legislation

Public Health and Wellbeing Act 2008 External Reporting

Australian Childhood Immunisation Register (ACIR) – Department of Human Services (Commonwealth) (DHS) Victorian Child and Adolescent Monitoring System (VCAMS) – Department of Education and Early Childhood Development (DEECD)

Schools Immunisation Program – Department of Health (DoH)

Notifiable Infectious Disease Surveillance System - Department of Health (DoH)

Appropriateness Participation 71. Number of eligible children who are fully vaccinated / Total number of eligible children

72. Number of secondary school consent cards returned / Total eligible secondary school children DHS DoH VCAMS indicator 3.1a – counts both council and GP administered vaccines ‘Eligible’ refers to children registered with Medicare Quality Program delivery 73. Number of children (12-15, 24-27 60-63 months) fully vaccinated / Total eligible children

74. Number of eligible children in Years 7 and 10 who are fully vaccinated / Total eligible children DoH Council administered vaccines only VCAMS indicator 3.1b

Cost Service cost 75. Direct cost of service / Total number of vaccinations administered

Council Direct cost does not include management or corporate overheads Service Effectiveness Notification of disease

76. Rate of notification of vaccine preventable diseases

DoH VCAMS indicator 3.2

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APPENDIX B Financial performance indicators

1. Operating position

Definition

Measures whether a council is able to generate an underlying surplus

Indicator Definition Measure Data Source Comments

1. Operating

result Measures whether _{revenues exceed}

expenses.

Underlying result / Underlying revenue

Financial statements

Underlying revenue and expenditure do not include:  non-cash contributions

 non-recurrent grants (including capital grants)  capital contributions (from other sources)

 other large items and/or adjustments that are not in the ordinary course of business (e.g. unfunded super, grants commission timing, asset write-off/ recognition)

Expected band for this measure is 0% - 5%

2. Liquidity

Definition

Measures whether a council is able to generate sufficient cash to pay bills on time

2. Working capital

Measures the ability to pay existing liabilities in the next 12 months

Current assets / Current liabilities Financial statements

No adjustment is to be made to current liabilities for long service leave (LSL) expected to be paid in the next 12 months

3. Unrestricted cash

Measures the proportion of current liabilities that can be

Unrestricted cash / Current liabilities Financial statements

Unrestricted cash does not include:

 Cash and financial assets that is not discretionary (e.g. conditional grants, statutory reserves)

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paid from unrestricted cash

 Cash on hand that will be used to fund carry forward capital works in the following year

No adjustment to be made for change to treatment of LSL current portion

3. Obligations

Definition

Measures whether the level of debt and other long term commitments is appropriate

4. Indebtedness Measures the

proportion of rates that is required to underwrite existing debt

Interest-bearing loans and borrowings / Total rates

Rates includes all municipal rates and charges such as municipal charges, garbage charges etc

Expected band for this measure: 20% - 60% 5. Debt repayments Measures the capacity to service current debt

Interest and principal repayments on interest-bearing loans and borrowings / Total rates

The measure includes both interest and principal payments

6. Long term

obligations

Measures the proportion of own sourced revenue that is required to meet non-current liabilities

Non-current liabilities / Own sourced revenue

Own-source revenue is total revenue excluding:  Revenue which is not under the control of council

(e.g. government grants, non-cash contributions)

No adjustment is to be made to current liabilities for LSL expected to be paid in the next 12 months

7. Asset renewal Measures the ability to meet asset

Actual (or budget) asset renewal expenditure / Planned asset

(34)

is a proxy) Asset management plans

 Upgraded or new assets

Planned asset renewal is expenditure set out in the relevant Asset management Plan for that year. Depreciation can be used as the denominator in the absence of Asset Management Plans

4. Stability

Definition

Measures whether a council is able to generate revenue from a range of sources

8. Rates concentration

Measures the concentration of revenue sources and reliance on rates

Rates / Total underlying revenue Financial statements

Underlying revenue does not include:  Non-cash contributions

 non-recurrent grants (including capital grants)  Capital contributions (from other sources)

 Other large revenue items and/or adjustments that are not in the ordinary course of business (e.g. grants commission timing, asset recognition) Expected band for this measure:

50% - 80%

9. Rating effort Measures the

amount of rates raised per $ of property valuation

Rates / Total Capital Improved Value (CIV) Financial statements Annual budget (following year)

Capital Improved Value (CIV) is measured at the end of the year and includes all valuation adjustments e.g. supplementary valuations.

10. Rates level Measures the

average residential rate per assessment

Residential rates / Total residential assessments

(35)

Annual budget (following

year)

Residential assessments is the number of assessments at the end of the year and includes all property

adjustments e.g. supplementary valuations from new or deleted assessments

5. Efficiency

Definition

Measures whether a council is using resources efficiently

11. Expenditure efficiency

Measures the efficient use of council resources per assessment

Underlying expenditure / Total assessments

Underlying expenditure does not include:

 other large items and/or adjustments that are not in the ordinary course of business (e.g. unfunded super, asset write-off) 12. Rate collection Measures the council’s ability to collect rates

Outstanding rates and charges / Total rates

Financial

statements Outstanding rates and charges does not include:  Provision for doubtful debts

Rates includes all municipal rates and charges such as municipal charges, garbage charges etc.

Expected band for this measure: 95% - 100%

(36)

APPENDIX C Sustainability indicators

1. Financial performance

Definition

The council must be able to absorb foreseeable changes and unexpected shocks without having to make disruptive revenue or expenditure adjustments

OPERATING POSITION

1. Operating result

Measures whether revenues exceed expenses

Underlying result / Underlying revenue

Strategic resource plan

Underlying revenue and expenditure do not include:  non-cash contributions

 non-recurrent grants (including capital grants)  capital contributions (from other sources)

 other large items and/or adjustments that are not in the ordinary course of business (e.g. unfunded super, grants commission timing, asset write-off/ recognition) Expected band for this measure is 0% - 5%

LIQUIDITY

2. Working capital

Measures the ability to pay existing liabilities in the next 12 months

Current assets / Current liabilities Financial statements

3. Unrestricted cash

Measures the proportion of current liabilities that can be paid from

unrestricted cash

Unrestricted cash / Current liabilities Financial statements

Unrestricted cash does not include:

 Cash and financial assets that is not discretionary (e.g. conditional grants, statutory reserves)

 Cash on hand that will be used to fund carry forward capital works in the following year

No adjustment to be made for change to treatment of LSL current portion

(37)

OBLIGATIONS

4. Indebtedness Measures the

proportion of rates that is required to underwrite existing debt

Interest-bearing loans and borrowings / Total rates

Expected band for this measure: 20% - 60% 5. Debt repayments Measures the capacity to service current debt

Interest and principal repayments on interest-bearing loans and borrowings / Total rates

The measure includes both interest and principal payments

6. Long term

obligations

Measures the proportion of own sourced revenue that is required to meet non-current liabilities

Non-current liabilities / Own sourced revenue

Own-source revenue is total revenue excluding: Revenue which is not under the control of council (e.g.

government grants, non-cash contributions)

7. Asset renewal Measures the ability to meet asset renewal demand

Actual (or budget) asset renewal expenditure / Planned asset renewal expenditure (Depreciation is a proxy) Financial statements Strategic resource plan Asset management plans

Asset renewal does not include: Upgraded or new assets

Planned asset renewal is expenditure set out in the relevant Asset management Plan for that year. Depreciation can be used as the denominator in the absence of Asset Management Plans

(38)

2. Capacity

Definition

The council must be able to meet the agreed service needs of the community

REVENUE EFFORT

8. Own source revenue

Measures the amount of own source revenue raised from the community

Own source revenue / Total Capital Improved Value (CIV)

Financial statements Strategic resource plan Annual budget (following year)

Own-source revenue does not include:

Revenue which is not under the control of council (e.g. government grants, non-cash contributions)

Capital Improved Value (CIV) is used as a proxy for capacity to pay in the absence of easily obtainable information on community income and is measured at the end of the year and includes all valuation adjustments e.g. supplementary valuations.

CIV could also be shown as a per capita measure to show the revenue raising capacity of the community.

9. Recurrent grants

Measures the amount of recurrent grants sourced from government

Recurrent grants / Total municipal population Financial statements Strategic resource plan ABS POPULATION 10. Population size - services Measures population size as a driver of service costs

Underlying expenditure / Total municipal population

ABS

Underlying expenditure does not include:

Large items and/or adjustments that are not in the ordinary course of business (e.g. unfunded super, asset write-offs)

(39)

11. Population size - infrastructure Measures population size as a driver of infrastructure costs

Infrastructure / Total municipal population

ABS

Infrastructure does not include: Land

Plant and equipment

12. Population density

Measures population density as a driver of service costs

Population / Total kilometres of local roads

Road

management Plan

ABS

The road network is used as the denominator to

recognise remote councils which may have large tracts of uninhabited or un-serviced land

(40)

3. Governance and Management

Definition

The council must have strong governance and management frameworks in place covering community engagement, planning, monitoring, reporting and decision making

Note

The following list is a self-assessment checklist. Where established, accepted standards and guidelines will be used to guide the self-assessment process

Requirement Definition

COMMUNITY ENGAGEMENT

1. Community engagement policy Policy adopted by Council outlining its commitment to _{engaging with the community on matters of public interest} 2. Community engagement guidelines Guidelines approved by management to assist officers in _{determining when and how to engage with the community} PLANNING

3. Council Plan Plan adopted by Council outlining the Council’s objectives _{and strategies for at least the next 4 years} 4. Strategic Resource Plan Plan adopted by Council outlining the resources and funding _{required for at least the next 4 years} 5. Annual Budget

Plan adopted by Council setting out the activities and initiatives to be undertaken over the next 12 months and the resources and funding required

6. Asset Management Plans Plans adopted by Council that set out the asset maintenance _{and renewal needs for at least the next 10 years} 7. Rating Strategy

Plan adopted by Council setting out the rating structure adopted by council to raise rates and charges including a justification taking into account the key rating principles

8. Risk Policy Plan adopted by Council outlining its commitment and _{approach to minimising business risk} 9. Fraud Policy Plan adopted by Council outlining its commitment and _{approach to minimising the risk of fraud}

10. Emergency Management Plan

Plan adopted by Council identifying the municipal resources and other resources available for use in the municipal district for emergency prevention, response and recovery

11. Business Continuity Plan

Plan approved by management setting our the actions that will be undertaken to ensure that key services continue to operate in the case of a disaster

12. Disaster Recovery Plan

Plan approved by management setting out the actions that will be undertaken to recover and restore and business capability (e.g. IT systems)

MONITORING

13. Risk Management Framework Plan approved by management outlining the organisation’s _{approach to monitoring business risk}

14. Audit Committee

Advisory committee of Council who’s role is to focus on financial reporting, the entity's processes to manage business and financial risk and for compliance with significant applicable legal, ethical, and regulatory requirements

15. Internal Audit Independent accounting professionals engaged by the Audit

(41)

at improving the organization's governance, risk management and management controls

16. Performance Reporting Framework A set of indicators approved by management measuring the _{services delivery and financial performance} 17. REPORTING

18. Council Plan reporting Six monthly report to Council of the strategic indicator results _{measuring achievement of its Council Plan objectives} 19. Financial reporting Three monthly report to Council comparing actual and _{budget financial results} 20. Risk reporting

Six monthly report to Council of strategic business risks, their likelihood and consequence and risk minimisation strategies

21. Performance reporting Six monthly report to Council of indicators measuring service _{delivery and financial performance} 22. Annual Report

Twelve monthly report to the Community containing a report of operations and audited standard, financial and

performance statement(s)

DECISION MAKING

23. Code of Conduct

Policy adopted by Council setting out the conduct principles and the dispute resolution processes to be followed by all Councillors

24. Delegations An instrument adopted by Council setting out the powers, _{duties and functions that have been delegated to members}

of staff

25. Meeting Procedures A Local Law adopted by Council governing the conduct of meetings of Council and special committees

26. Council Committees

Special or advisory committees approved by Council consisting of Councillors, staff or other persons with either responsibilities for making decisions on behalf of Council (delegated) or providing advice (undelegated)

Draft Local Government Performance Reporting Framework & Indicators. Working Paper